What Inventory Valuation Method is Right for My Business

Inventory Valuation Methods & Their Impact on Your Business

Business owners may recognize the classic inventory valuation methods but few know the direct impact that each method will have on their financials. The choice between inventory valuation methods can lead to drastic differences in net income, cost of goods sold, and ending inventory.

As accountants and business owners, we must analyze each method and apply the method that most accurately reflects periodic income.

and demonstrate the unique impact that each method will have on the financial statements.

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Overview

Business owners may recognize the classic inventory valuation methods but few know the direct impact that each method will have on their financials. The choice between inventory valuation methods can lead to drastic differences in net income, cost of goods sold, and ending inventory.

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